Question: The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
|
Rails
Division |
Locomotive
Division |
Corporate
Total |
| Cost of goods sold |
$45,100 |
$32,000 |
|
| Direct operating expenses |
28,000 |
20,000 |
|
| Sales |
97,300 |
68,700 |
|
| Interest expense |
|
|
$2,100 |
| General overhead |
|
|
18,400 |
| Income tax |
|
|
4,300 |
The income from operations for the Locomotive Division is
A.$68,700
B.$36,700
C.$48,700
D.$16,700